Kingwest Resources Ltd (ASX:KWR) has announced the significant discovery of bedrock and alluvial gold mineralisation through the initial results of the drilling program at Sir Laurence, Lake Goongarrie. The initial results from 29 holes of 80 holes drilled so far demonstrate significant mineralisation up to 800m south and along strike of discovery line 5.
Following the announcement, shares in Kingwest Resources Ltd soared 17.24% to $0.17/share.
When a mining company announces a new resource discovery it?s exciting times for shareholders.
A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.
Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.
When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.
Greenfield exploration is looking for mineral deposits in areas that have not been explored.
In brownfield exploration deposits are being sought near or next to an already existing mine.